Okaloosa County BOCC — March 15, 2016 — Surfside Ventures Amendment — reading text

SIXTH AMENDMENT TO PUBLIC PARK LEASE BETWEEN OKALOOSA COUNTY AND SURFSIDE VENTURES, INC. This SIXTH AMENDMENT TO PUBLIC PARK LEASE (the “Sixth Amendment”) is hereby entered into between the Board of County Commissioners of Okaloosa County (the “County”) and Surfside Ventures, Inc. (“Surfside”). WHEREAS, the County, and Paradise Parks, Inc., the predecessor to Surfside, entered into a Public Park Lease on May 5, 1992, as recorded in Official Records Book 1729, at Page 490 (hereafter called the “Initial Lease”); and WHEREAS, the Initial Lease was amended pursuant to certain agreement dated March 2, 1993, and recorded in Official Records Book 1730, at Page 335 (the “First Amendment”); and WHEREAS, on June 23, 1998, the Initial Lease was amended which approved the transfer of the leasehold interest from Paradise to Surfside Ventures, Inc., and agreed in consideration for Surfside maintaining the lake property commonly known as Kiwanis Club of Fort Walton Beach Lake, to extent the Initial Lease for a period of thirty (30) years commencing December 1, 1992 as set forth in Minute Book 42, at Page 19 of the Official Minutes of the Board of County Commissioners of Okaloosa County (the “Second Amendment”). Under the Second Amendment, the Initial lease, as amended, would terminate on November 30, 2022; and WHEREAS, the Initial Lease was subsequently amended by an “Amendment to Public Park Lease” which was executed by the County on March 21, 2000 and by Surfside on April 19, 2000 (the “Third Amendment™). The Third Amendment is recorded in Official Record Book 2253, at Page 1153 of the Official Records of Okaloosa County, Florida. The Third Amendment, among other things, modified the Initial Lease as to the rent amounts, extended the Initial Lease for a terms of thirty (30) years beginning January 1, 1999, provided the approved development plans to construct space for the Okaloosa County Sheriff’s Department and Okaloosa County Emergency Medical Services Substation or other uses, set forth the responsibility for the provision of lifeguard services and required the provision of maintenance services; and WHEREAS, the Initial Lease, as amended was approve by the Board of County Commissioners at its meeting held on October 17, 2000 and recorded in Minute Book 44, at Page 394 of the Official Minutes of the Board of County Commissioners of Okaloosa County which reduced the gross square footage of space at the Okaloosa Island Boardwalk by 2500 square feet (the “Fourth Amendment”); and WHEREAS, the Initial Lease was amended by the approval of an “Agreement and Stipulation” on November 25, 2001 which is recorded in Official Record Book 2328, at Page 2747 of the Official Records of Okaloosa County, Florida (the “Fifth Amendment”). The Fifth Amendment modified the time period for the construction of the substation and modified the rent that the County would pay for that space; and WHEREAS, the parties desire to amend the Initial Lease, as amended, to provide an additional extension of time for the expiration of the Initial Lease, as amended, and to modify the rental rates to more closely address the market value of the leasehold interests granted hereunder. NOW THEREFORE, the County and Surfside do agree to amend the Initial Lease, as subsequently amended, to provide as follows: Section 1. Section 2 of the Initial Lease is hereby amended to read as follows in its entirety: Section 2. TERM: The term of this lease shall be extended for an additional ten (10) years beyond the expiration of the Initial Lease, as amended by the Third Amendment. The term of the lease granted by the Third Amendment extended the Initial Lease from January 1, 1999 and would expire on December 31, 2029. That term is now further extended for the period of January 1, 2030 and will expire on December 31, 2039. Section 2. Section 3 of the Initial Lease, as previously amended, is further amended to read as follows in its entirety: Section 3. RENT: Surfside shall pay as rent in the following amounts: 1. For the period of the amount of January 1, 2016 to December 31, 2016, Surfside, or its successors in interests or assignees, shall pay the annual amount of $71,740.18. If such amount has been paid to the County for this period prior to the entry of this Sixth Amendment, then Surfside shall receive a full credit for this amount. 2. The Rent under this Initial Lease, as amended, shall be as follows: a. Beginning for the term of January 1, 2017 to December 31, 2021, and for the next four years thereafter, the base rent shall be $250,000 per annum. b. Beginning in annual term year of January 1, 2022 through December 31, 2022, and for the next four years thereafter, the base rent shall be increased each year by two percent (2%) per year. c. Beginning in annual term year of January 1, 2027 through December 31, 2027, and for the next four years thereafter, the base rent shall be increased each year by three percent (3%) per year. d. Beginning in annual term year of January 1, 2032 through December 31, 2032 and through the end of the term on December 31, 2039, the base rent shall be increased each year by three and one half percent (3.5%) per year. 3. All annual payments for Rent shall be paid prior to October | of each year for the upcoming January 1 through December 31 annual term (the “Due Date”). In the event that Surfside fails to pay the Rent prior to the October 1 Due Date, nor pays within the ten (10) days thereafter (the “Grace Period”), then that failure to pay the Rent shall be deemed a breach of the Initial Lease, as amended. In the event that there is a breach based upon the failure to pay the Rent, the County shall provide notice of the failure to pay. Surfside shall have fifteen (15) days from receipt of the notice to cure the beach by paying the Rent amounts due in full, along with a penalty of ten percent (10%) on the outstanding amount due (the “Cure Period”). If Surfside fails to cure the default within the fifteen day Cure Period then the County may terminate the lease with notice to Surfside and take immediate possession of the Property. 4. The annual Rent amounts shall be paid in full. The amounts due for the remainder of the term of the Initial Lease, as amended, with the application of the various adjustments as set forth herein, shall be as follows: RENTAL PERIOD AMOUNT OF RENT DUE January 1, 2017 to December 31, 2017 $250,000.00 January 1, 2018 to December 31, 2018 $250,000.00 January 1, 2019 to December 31, 2019 $250,000.00 January 1, 2020 to December 31, 2020 $250,000.00 January 1, 2021 to December 31, 2021 $250,000.00 January 1, 2022 to December 31, 2022 $255,000.00 January 1, 2023 to December 31, 2023 $260,100.00 January 1, 2024 to December 31, 2024 $265,302.00 January 1, 2025 to December 31, 2025 $270,608.00 January 1, 2026 to December 31, 2026 $276,020.00 January 1, 2027 to December 31, 2027 $284,301.00 January 1, 2028 to December 31, 2028 $292,830.00 January 1, 2029 to December 31, 2029 $301,615.00 January 1, 2030 to December 31, 2030 $310,663.00 January 1, 2031 to December 31, 2031 $319,983.00 January 1, 2032 to December 31, 2032 $331,182.00 January 1, 2033 to December 31, 2033 $342,773.00 January 1, 2034 to December 31, 2034 $354,770.00 January 1, 2035 to December 31, 2035 $367,187.00 January 1, 2036 to December 31, 2036 $380,039.00 January 1, 2037 to December 31, 2037 $393,340.00 January 1, 2038 to December 31, 2038 $407,107.00 January 1, 2039 to December 31, 2039 $421,356.00 5. In addition to the above rental amounts, Surfside shall be responsible for and agree to pay any State sales tax or any other tax, assessment or surcharge on the Rent paid or any other consideration of the Initial Lease, as amended, paid to the County, plus any ad valorem, intangible, or other tax or assessment imposed by the State or Federal law or regulation, or any County ordinance or requirement. Surfside shall also pay to the appropriate entity any other charges that are imposed based upon the activities of Surfside on the Property, including the activities of its sub lessees or assigns. Section 3. All other terms and provisions of the Initial Lease, as subsequently amended, shall remain in force and effect to the extent that they have not been altered or are otherwise inconsistent with the Sixth Amendment. BOARD OF COUNTY COMMISSIONERS OF OKALOOSA COUNTY By: Charles K. Windes, Jr. Chairman ATTEST: J. D. Peacock, II Clerk SURFSIDE VENTURES, INC. Befi&bl‘t/ Bonezzi its: Ao 1ds Pre sidend Witn Cz STATE OF FLORIDA COUNTY OF OKALOOSA The fo1egomg instrument was acknowledged before me this ft' f: day of 2016, by Robert Bonezzi, the ?(@.5/ cend of Su1f51de Ventu1 es X. /0 b@ At [SEAL] atme of Notary Public) 5)\\ CTOJAO'M JILL R. GRAHAM «F“ Uo( : 7 Notary Public - State of Florida Z.@t My Comm. Expires Aug 21. 2018 'Fo;ndlL Commission # FF 151594 (Print Name of Notary Public) T /fi)mmission Number) Personally Known or Produced as identification.